Romania confirms 3.9% GDP contraction in 2020
Romania's statistics office INS confirmed on April 8 the surprisingly moderate 3.9% GDP contraction in 2020 and operated only marginal revisions. In nominal terms, last year's GDP reached RON 1,056 billion (EUR 222 bln).
INS also confirmed the 4.8% quarter-on-quarter GDP growth in the last quarter of 2020 (Q4), which was the strongest performance among European Union's members and prompted international financial institutions to improve their forecasts on Romania's recovery in 2021.
The IMF recently projected 6% economic growth for Romania in 2021, under the World Economic Outlook. Romania's Government drafted the 2021 budget planning based on expectations for a 4.3% increase. A faster growth (particularly if matched by higher budget revenues) would help it pursue the fiscal consolidation plan.
As regards the revision in the GDP figures, as compared to the initial estimate published on March 9, INS increased its estimate on the gross fixed capital formation - to +6.8% year-on-year from +5.6% yoy previously.
Households' consumption was revised slightly downward, to a 5% contraction (from -4.7% yoy).
On the GDP formation side, constructions expanded in value-added terms by 10% yoy while industry contracted by 9.1% yoy and services' performance was more or less steady compared to 2019 - except for entertainment that saw a deep plunge of nearly one quarter.
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